Saturday, January 2, 2010

Nifty at significant pivot

The Nifty is now standing at 5200, which is a significant pivot level, looking back over the past 18 months.

A breakout from 5200 resistance may well signal a parabolic rally in the market. A pullback will find support at every dip, so at least for now, the buy on dips strategy should work.

Every breakout is a point of maximum risk. This will also apply to a move above 5200. Risk comes with reward, and, traders who take the trade understand this.

It is freezing cold in Delhi. I talked to my colleague in Chandigarh who told me it is probably colder there. All of North and East India comes under a cold spell from mid december to mid february. Many people commute for one and half hours, to reach their work places. Asking employees to come to work at 8:00 AM is unfair because the early trading is unlikely to result in any added value.

Cheers.

2 comments:

Danish Kapur said...

Early Trading may not be good for people living in India but it is good for us in New York. We can sleep early :)

Amit T said...

Hi Mr. Sukhani

I have always valued your comments on trading with technical data n analysis. In my understanding and inference the real big rally, if it happens should be after nifty crosses ~5500 i am not saying this because nifty is at 5200 now but a trend line barrier and contracting range theory. i have only done 25 trades in my lifetime as a trader (24 months)